The bill amends sections of the General Laws related to Accident and Sickness Insurance Policies, Nonprofit Hospital Service Corporations, Nonprofit Medical Service Corporations, and Health Maintenance Organizations. It introduces a new provision that prohibits insurance companies, which are organized as stock or mutual corporations and have merged with, acquired significant control or assets of, or otherwise gained control over nonprofit hospital service corporations, nonprofit medical service corporations, or health maintenance organizations, from paying rates that are less than the approved Medicaid rates set by the executive office of health and human services. This is in addition to existing prohibitions on filing for state agency review or approval of proposed rates that reflect the value of contributions to charitable foundations associated with these nonprofit entities.

The bill requires that for any rate to be charged to policyholders, whether or not the rate is subject to state agency approval, the insurance company must submit an accounting to the commissioner of insurance at least thirty days before implementing the rate. This accounting must be under oath and must document the cost structure on which the rate is based, demonstrating the company's compliance with the section. The act is set to take effect on January 1, 2025.

Statutes affected:
8056: 27-18-54, 27-19-30.1, 27-20-25.2, 27-41-27.2